Meta Platforms, Inc.

Q3 total revenue was $64.6 billion, up 26% year over year on both a reported and constant-currency basis. Family of Apps revenue was $64.2 billion, up 26%, with ad revenue of $63.1 billion, also up 26%; other revenue was $1.1 billion, up 59%. Reality Labs revenue was $443 million, down 6%. Total expenses were $51.6 billion, up 68%, including a $9.9 billion legal charge. GAAP operating income was $13 billion, down 37%, with a 20% operating margin; net income was $9.9 billion and EPS was $3.83. Free cash flow was negative $2.1 billion, capex including finance lease principal was $34.9 billion, and the company ended with $82.4 billion in cash and marketable securities and $83.7 billion in debt. For Q4 2026, Meta guided total revenue to $73 billion to $76 billion and expects a 1% FX headwind; full-year 2026 expenses are now expected to be $175 billion to $179 billion, capex to be $135 billion to $145 billion, and Reality Labs losses to be $18 billion to $19 billion for 2026. Management also said Q4 2026 tax rate should be 15% to 17%, and that excluding the legal charge, 2026 operating income is still expected to be above 2025.

Mark Zuckerberg said the quarter showed strong momentum across Facebook, Instagram, Threads, WhatsApp, and Meta AI, with engagement at all-time highs and video driving growth. He framed Muse as the company’s next major platform shift, saying it has clear product-market fit, strong early retention, and a path to becoming a large network of personal agents across consumer and business use cases. His tone was upbeat and strategic, with repeated emphasis on long-term scale, model-building, and using Meta’s core business to fund the buildout before Muse becomes highly profitable.

Susan Li focused on the numbers behind the quarter and the outlook. She pointed to 26% revenue growth, the $9.9 billion legal charge, 68% expense growth, a 20% operating margin, negative $2.1 billion free cash flow, and $34.9 billion of capex tied to servers, data centers, and network infrastructure. On guidance, she raised full-year expense expectations to $175 billion to $179 billion, narrowed 2026 capex to $135 billion to $145 billion, and said Reality Labs losses should decline to $18 billion to $19 billion in 2026. She also said Meta expects to keep investing aggressively into 2027, with AI expected to support both core ads growth and new revenue streams over time.

Analysts pressed on Muse’s growth limits, compute costs, and whether monetization needs to happen faster than Meta’s usual playbook. Management said the main near-term constraint is compute efficiency and that global rollout is still limited by cost and optimization work; they also said they plan to monetize sooner than in past product launches because the costs are larger and commerce use cases are already prominent. On enterprise and agentic commerce, executives said businesses are broadly receptive, but adoption will likely move toward permissioned, structured interactions and direct agent-to-agent integrations, which Meta is helping shape through standards work. On the new nonvoting share class, Susan Li said it is intended to preserve the founder-led structure while expanding financing flexibility, though there are no specific financing plans to announce.